Purchasing Managers’ Index (PMI) data by Stanbic IBTC Bank claims that business activities saw improvement in September, 2023.
This marginal improvement happened in September and the headline index moved from 50.2 to 51.1, according to the PMI data.
A reading above 50 portrays improved business activities while any reading below 50 also portrays that businesses are in a declining state.
The report was compiled by S&P Global Market Intelligence and it read that solid cost pressures showed that companies in the private sector were under pressure last month despite new order growth accelerating.
Also, the report noted that input prices reportedly rose at one of the quickest rates ever and this was mostly as a result of weak currency rates and also, rising costs of fuel.
The survey also stated that in September, new orders rose for the sixth consecutive month as certain businesses indicated that demand was improving. Even if the rate of growth picked up speed from August, it was still quite slow because of the sluggish market and price increases discouraging customers.
The report that was compiled by S&P Global Market Intelligence also revealed that output returned to growth in the month in review.
With the exception of manufacturing, three of the four industries observed experienced output growth.
Sharp price increases at the conclusion of the third quarter were one of the primary factors restraining demand in the private sector.
According to the report, overall input costs increased at a rate that was only marginally slower than the August survey record.
The report also revealed that purchasing costs rose substantially and this was due to the weakness of exchange rates and the increase in the cost of fuel.
The survey also noted that wages were also raised due to the efforts put in by companies to aid their staff in dealing with the increase in transportation fares and that the rate of staff cost inflation was only a bit higher than the previous one that was recorded in August.
This means that the rise in the costs of goods purchased led to even steeper rates of price increase for goods sold, despite the last recorded rise being the smallest in May.
The statement also added that: “September witnessed a rise in employment for the fifth consecutive month, if not significantly. Businesses increased their spending, although at a slower pace than they had in the previous six months. This also applied to buying stocks. Delivery times from suppliers were lowered by vendor competition, timely payments, and calm traffic.”
September’s confidence in the output outlook for the coming year remained unchanged, making it one of the lowest on record.
